Wald Press
1. Situation Analysis
Sl No. Fact Inference
1. Campbell Brothers was the major customer for Wald Press Drop in sales of Campbell affected Wald operations and reliability on Campbell
2. Campbell was unable to find other printers to take care of part of their work Dependence on existing relationship with Wald press
3. Immediate expansion of capacity for Wald Press is not feasible
4.
During 1944 & 1945, the revenue from Campbell Brothers contributed to ~80% of Wald Press’ revenues
5. Outside contracts make little or no profit
6. Outside contracts involve higher inventory cost
7. Overhead is allocated in ratio of number of books Overhead of Campbell might be shared by OC or vice-versa
8. The percentage of books published for Campbell Brothers was 81% in 1944 and 86% in 1945
9. From exhibits The number of books manufactured by Wald Press and those sold by Campbell are highly correlated (Correlation Coefficient = 0.95)
10. Advantages of choosing outside contracts over Campbell
• Simpler operations ? fewer production difficulties
• Fewer operations ? less production time (15% less than Campbell)
•
Cheaper and more number of books can be produced by Wald working with outside contracts
11. Wald press has a moral obligation to outside contracts&n ...